Energy storage ancillary products

Do battery energy storage systems provide ancillary services?

Battery energy storage systems are particularly well-suited to provide Ancillary Services - due to their near-instantaneous ramp rates. However, Ancillary Services aren’t infinite. At any one time, ERCOT only needs a certain volume of each. Brandt looks into when ERCOT’s Ancillary Services will be saturated for BESS.

What is the difference between ancillary services and Energy Arbitrage?

Ancillary Services provide a stable, secure revenue stream - relative to Energy arbitrage. Reserve Ancillary Service products tend to require lower cycling rates than Energy arbitrage. Battery energy storage systems are particularly well-suited to provide Ancillary Services - due to their near-instantaneous ramp rates.

What are energy management ancillary services?

The energy management ancillary services protect equipment, let backup problems, increase energy value, and make investment costs of isolated power systems more profitable.

Why are ancillary services important?

Ancillary services are essential to prevent blackouts and other system failures, providing stability to energy markets. In energy markets, ancillary services are a key component that helps maintain system reliability.

Which is better reserve ancillary service or energy arbitrage?

Reserve Ancillary Service products tend to require lower cycling rates than Energy arbitrage. Battery energy storage systems are particularly well-suited to provide Ancillary Services - due to their near-instantaneous ramp rates. However, Ancillary Services aren’t infinite. At any one time, ERCOT only needs a certain volume of each.

Will battery-dominated ancillary services be saturated?

And the amount of Ancillary Service volume that batteries are competing for. However, we do expect to see saturation happen in battery-dominated Ancillary Services in the next few months. Battery energy storage systems in ERCOT currently earn 90% of their revenues from Ancillary Services.